WEBVTT - Restaurant Dining Comeback in Full Swing

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<v Speaker 1>You're listening to Bloomberg Business Week with Carol Masser and

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<v Speaker 1>Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. It's Bloomberg

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<v Speaker 1>Business Week, Tim Stanovik and a Katie Dreifeld in for

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<v Speaker 1>Carol Master this afternoon. Katie, have you tried to make

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<v Speaker 1>a restaurant reservation at your favorite restaurant? I have a

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<v Speaker 1>reservation tomorrow. When did you have to make it? I

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<v Speaker 1>don't know. Joe made it. When do you think you

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<v Speaker 1>mean you had to make it weeks ago? Right? Well,

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<v Speaker 1>I think he made it actually during the weekend. But

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<v Speaker 1>you know, it just wasn't it early. It's earlier than

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<v Speaker 1>we would like to. You're not showing up. Yeah, you're

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<v Speaker 1>not showing up that day and actually getting a reservation.

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<v Speaker 1>It's at like four four pm or it's a you're go, okay, Well,

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<v Speaker 1>if it's at four forty four, you should still be

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<v Speaker 1>at work for sure, definitely, and I will be so

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<v Speaker 1>obviously we took the ten pm. Okay, sare it us.

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<v Speaker 1>Let's get into the health of the restaurant industry. We're

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<v Speaker 1>really pleased to have back with us. Debbie Sue, she's

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<v Speaker 1>CEO of Open Table, she joins us once again via

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<v Speaker 1>zoom from San Francisco, to have you. Good to have

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<v Speaker 1>you back with us. Katie and I got to speak

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<v Speaker 1>with you just a few months ago. How are you.

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<v Speaker 1>I'm doing well and I'm so happy to be here

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<v Speaker 1>with you all again. Well, it's good to have you

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<v Speaker 1>back with us. Last time we spoke, you talked about

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<v Speaker 1>the idea that consumers were returning, diners were returning to

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<v Speaker 1>the platform in droves. UM. What's changed in just a

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<v Speaker 1>few months. Give us a health check of the restaurant industry.

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<v Speaker 1>We are we are continuing to see that that dining

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<v Speaker 1>demand remains really strong. If you look at the year end,

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<v Speaker 1>so for for this entire year, we are approaching on

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<v Speaker 1>nationwide UM pre pandemic levels. We're up versus last year.

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<v Speaker 1>So we can say that dining is back UM or

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<v Speaker 1>that dining has held strong. The holiday season is looking great.

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<v Speaker 1>Thanksgiving UM is usually a good you know, a sign

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<v Speaker 1>of what things are to come during the holiday season,

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<v Speaker 1>and demand was really strong then. So people were just

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<v Speaker 1>seeing that people are continuing to prioritize that dining out

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<v Speaker 1>at at a restaurant experience. Despite all the news we're

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<v Speaker 1>hearing and we're feeling it as well, right about inflation,

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<v Speaker 1>rising costs, um, all that economic turbulence. People are continuing

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<v Speaker 1>to you know, allocate pieces of their household piano to

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<v Speaker 1>the dining out experience. How do you explain that because

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<v Speaker 1>those things are at odds? Yeah, I know, and I

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<v Speaker 1>think you know, um, we're we're still seeing some pent

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<v Speaker 1>up revenge dining. I think as a result of the

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<v Speaker 1>pandemic when many of us were cooped up in our

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<v Speaker 1>houses or apartments for um a long time. So I

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<v Speaker 1>think that is still playing here. Um. I also think

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<v Speaker 1>it's because from many of us, the nature of work

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<v Speaker 1>has changed. Um. Many people work remotely, some people are

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<v Speaker 1>in a hybrid situation where they go into the office

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<v Speaker 1>you know, twice a week as opposed to five times

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<v Speaker 1>a week. And I think people are really craving that

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<v Speaker 1>in person, you know, experience that they're not getting when

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<v Speaker 1>they're just working from home. Um. And so I think,

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<v Speaker 1>you know, dining out at a restaurant is one of

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<v Speaker 1>those ways they can get that. And we're seeing that

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<v Speaker 1>in the data too. We're seeing, for example, uh, pre

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<v Speaker 1>pandemic days, bar seating was the least favorable type of

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<v Speaker 1>the seat that one could book, and right now we're

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<v Speaker 1>seeing people are actually requesting those seats and wanting to

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<v Speaker 1>be in the thick of it all. So I think

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<v Speaker 1>because work is changing for many of us, that that

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<v Speaker 1>has trickled down effects, you know, into dining and our

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<v Speaker 1>behavior as consumers. Um, you know what what it means

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<v Speaker 1>now to to go out to a restaurant, Iffy, let's

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<v Speaker 1>unpack some of those trends. If if the shifting nature

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<v Speaker 1>of work is changing how people are dining out, what

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<v Speaker 1>does that mean in terms of what days that people

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<v Speaker 1>are coming to restaurants, what times, things of those chairs. Yes,

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<v Speaker 1>so we're seeing that Monday's, UM, to your point, are

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<v Speaker 1>so historically Mondays were a very slow time for restaurants

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<v Speaker 1>pre pandemic. Right now, what we're seeing Monday's or the

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<v Speaker 1>weekend after party, it's kind of an extension of the weekend.

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<v Speaker 1>So we're seeing really big increases in dining compared to

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<v Speaker 1>last year up on Monday's. UM. The time is also

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<v Speaker 1>different in terms of the time that people are going

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<v Speaker 1>to reservations. You had said forty five or ten, we're

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<v Speaker 1>actually seeing um, a lot of people dining between four

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<v Speaker 1>and five UM that that time period increased twenty seven,

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<v Speaker 1>a very large increase um compared to pre pandemic time.

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<v Speaker 1>So happy hour is the new dinner. I think it's

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<v Speaker 1>because oftentimes, like if you are working remotely or hybrid um,

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<v Speaker 1>you're commute. You don't have a commute time, right, So

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<v Speaker 1>you could be done with work and you can out

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<v Speaker 1>down you know, your computer and just literally, you know,

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<v Speaker 1>leave your home and go to a restaurant. Debbie, does

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<v Speaker 1>that change? So I've talked about this a bit. I

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<v Speaker 1>don't have any data on this, and I'm hoping you

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<v Speaker 1>can help with this because it's all anecdotal for me.

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<v Speaker 1>But in my neighborhood in Brooklyn, you know, I come

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<v Speaker 1>into work every day because I can't work remotely. But

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<v Speaker 1>if I'm off a day and I'm at at home

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<v Speaker 1>and I'm walking around the neighborhood, it is like packed.

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<v Speaker 1>You know, sandwich shops that are usually packed on a

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<v Speaker 1>week day on a weekend only are packed during the

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<v Speaker 1>week because people are working from home. Do you have

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<v Speaker 1>any data that shows sort of the the epicenter of

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<v Speaker 1>of these areas is kind of shifting a little bit

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<v Speaker 1>because of people's work patterns. Yes, So we in that

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<v Speaker 1>the Brooklyn story or your experience is very similar to

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<v Speaker 1>what we're seeing. UM. You know, during the pandemic, I

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<v Speaker 1>think a lot of people moved out of the city proper.

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<v Speaker 1>Uh and and in areas around a big city, UM,

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<v Speaker 1>Brooklyn here could be an example of that, and UM,

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<v Speaker 1>a lot of so we're seeing a lot of dining

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<v Speaker 1>activity happening, you know in Brooklyn versus you know in

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<v Speaker 1>the middle of midtown or Manhattan. UM. We're seeing that

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<v Speaker 1>in the Bay Area here in San Francisco. UM. So

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<v Speaker 1>we're seeing like emergence of kind of these UM areas

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<v Speaker 1>outside of cities really gained and prominence. And I think

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<v Speaker 1>Brooklyn also, like it's a trends, tends to have a

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<v Speaker 1>younger demographic, if I were to guess, like a very

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<v Speaker 1>cool demographics. I don't know if I'm either of those things.

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<v Speaker 1>But thank you, Debby. But you know, it's not surprising.

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<v Speaker 1>It's not surprising to hear that we have. You know,

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<v Speaker 1>there's a big remote workforce out there that you know,

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<v Speaker 1>during lunchtime can go to the sandwich shop down the street.

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<v Speaker 1>So I've been thinking about what you said about people

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<v Speaker 1>actually in some cases requesting to sit at the bar

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<v Speaker 1>because I've never done that in my life. But I

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<v Speaker 1>don't want to sit at the bar. I don't want

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<v Speaker 1>to sit next to people. Okay, that's what I mean.

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<v Speaker 1>But in any case, are you seeing that in that

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<v Speaker 1>sort of drive to be in the thick of it

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<v Speaker 1>in the action? Are you seeing that in the dining

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<v Speaker 1>choices that people are making in terms of the types

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<v Speaker 1>of restaurants that they're booking. Absolutely, so we're seeing diners

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<v Speaker 1>really crave that connectivity. So cuisines like Korean barbecue, Hibachi grill,

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<v Speaker 1>Brazilian steakhouse, um, those types of food venues are doing

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<v Speaker 1>very very well because again, unlike you, a lot of

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<v Speaker 1>people want to be in the thick of it. They

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<v Speaker 1>want to be sharing a table with folks they don't

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<v Speaker 1>know and and being in that kind of communal environment

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<v Speaker 1>that's so interesting. Does this hold? We're seeing it hold? Um?

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<v Speaker 1>It's it started up last year and it's continued to

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<v Speaker 1>persist um this year. I really think a lot of

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<v Speaker 1>it is related to the pandemic UM and kind of

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<v Speaker 1>a new post pandemic life with again work changing for

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<v Speaker 1>so many of us. Um that right like it, it

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<v Speaker 1>impacts other other facets of our life. And so I

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<v Speaker 1>mean if theoretically we're here a year from now talking

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<v Speaker 1>about the trends that we saw in what do you

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<v Speaker 1>think what what kind of conversation we're gonna be having. Well,

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<v Speaker 1>I hope we're going to have a similar one in

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<v Speaker 1>terms of dining demand remaining very strong. Um. You know,

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<v Speaker 1>and we watched the data very carefully across the board,

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<v Speaker 1>just because there is so much noise regarding the economy,

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<v Speaker 1>and we hear from restaurant partners how hard it is

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<v Speaker 1>to be running m their restaurants. But the hero of

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<v Speaker 1>the day and the story is that consumers continue to

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<v Speaker 1>prioritize going out and dining at restaurants. Yeah, sorry, thirty

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<v Speaker 1>seconds left. Does that change though in a softening economy?

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<v Speaker 1>I mean, everyone we've spoken to today is planning on session. Yes, um,

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<v Speaker 1>And we're we remain bullish about dining. We think that

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<v Speaker 1>may be the check size will change, but we think

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<v Speaker 1>that people will continue to prioritize connecting with others, whether

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<v Speaker 1>that be family or friends at a meal at a restaurant.

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<v Speaker 1>W S. It's always great to check in with you

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<v Speaker 1>and get a real understanding for what's going on when

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<v Speaker 1>it comes to restaurants in this Economy w is CEO

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<v Speaker 1>at Open Table. You know it as a restaurant booking platform.

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<v Speaker 1>She joined us this afternoon via zoom from San Francisco.